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Income Taxes | 12 Months Ended
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Nov. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income before income taxes are as follows (in thousands):
| Fiscal Year Ended
| November 30, 2017 |  | November 30, 2016 |  | November 30, 2015
U.S. | $ | 77,442 |  |  | $ | 78,477 |  |  | $ | 62,813 |
Foreign | (11,855 | ) |  | (113,757 | ) |  | (50,459 | )
Total | $ | 65,587 |  |  | $ | (35,280 | ) |  | $ | 12,354 |
The provision for income taxes is comprised of the following (in thousands):
| Fiscal Year Ended
| November 30, 2017 |  | November 30, 2016 |  | November 30, 2015
Current: |  |  |  |  |
Federal | $ | 23,739 |  |  | $ | 12,934 |  |  | $ | 18,418 |
State | 2,461 |  |  | 3,178 |  |  | 1,526 |
Foreign | 1,496 |  |  | 3,027 |  |  | 3,056 |
Total current | 27,696 |  |  | 19,139 |  |  | 23,000 |
Deferred: |  |  |  |  |
Federal | 1,548 |  |  | 6,203 |  |  | 2,199 |
State | 61 |  |  | (1,963 | ) |  | 60 |
Foreign | (1,135 | ) |  | (2,933 | ) |  | (4,104 | )
Total deferred | 474 |  |  | 1,307 |  |  | (1,845 | )
Total | $ | 28,170 |  |  | $ | 20,446 |  |  | $ | 21,155 |
A reconciliation of the income taxes incurred at the U.S. Federal statutory rate compared to the effective tax rate is as follows (in thousands):
| Fiscal Year Ended
| November 30, 2017 |  | November 30, 2016 |  | November 30, 2015
Tax at U.S. Federal statutory rate | $ | 22,955 |  |  | $ | (12,348 | ) |  | $ | 4,324 |
Foreign rate differences | 4,575 |  |  | 7,689 |  |  | 16,945 |
Effects of foreign operations included in U.S. Federal provision | (186 | ) |  | (1,244 | ) |  | (996 | )
State income taxes, net | 1,702 |  |  | 2,977 |  |  | 1,029 |
Research credits | (251 | ) |  | (838 | ) |  | (681 | )
Domestic production activities deduction | (2,670 | ) |  | (1,925 | ) |  | (1,750 | )
Tax-exempt interest | (101 | ) |  | (76 | ) |  | (51 | )
Nondeductible stock-based compensation | 808 |  |  | 740 |  |  | 1,875 |
Meals and entertainment | 276 |  |  | 234 |  |  | 321 |
Compensation subject to 162(m) | 208 |  |  | — |  |  | 228 |
Uncertain tax positions and tax settlements | 429 |  |  | (1,701 | ) |  | (332 | )
Prior period adjustment | — |  |  | (2,700 | ) |  | — |
Release of valuation allowance on state research and development credits | — |  |  | (2,748 | ) |  | — |
Goodwill Impairment | — |  |  | 32,200 |  |  | — |
Other | 425 |  |  | 186 |  |  | 243 |
Total | $ | 28,170 |  |  | $ | 20,446 |  |  | $ | 21,155 |
During the preparation of our condensed consolidated financial statements for the three months ended May 31, 2016, we identified an error in our prior year income tax provision whereby income tax expense was overstated for the year ended November 30, 2015 by $2.7 million related to our tax treatment of an intercompany gain. We determined that the error is not material to the prior year financial statements. We also concluded that recording an out-of-period correction would not be material and therefore corrected this error by recording an out-of-period $2.7 million tax benefit in our interim financial statements for the periods ended May 31, 2016. The components of deferred tax assets and liabilities are as follows (in thousands):
| November 30, 2017 |  | November 30, 2016
Deferred tax assets: |  |  |
Accounts receivable | $ | 226 |  |  | $ | 360 |
Other assets | 225 |  |  | 77 |
Accrued compensation | 5,456 |  |  | 3,267 |
Accrued liabilities and other | 5,402 |  |  | 3,207 |
Stock-based compensation | 1,160 |  |  | 4,377 |
Deferred revenue | 3,436 |  |  | 1,325 |
Tax credit and loss carryforwards | 31,441 |  |  | 23,167 |
Gross deferred tax assets | 47,346 |  |  | 35,780 |
Valuation allowance | (1,537 | ) |  | (3,189 | )
Total deferred tax assets | 45,809 |  |  | 32,591 |
Deferred tax liabilities: |  |  |
Goodwill | (26,484 | ) |  | (23,685 | )
Unrealized FX gains | (644 | ) |  | (647 | )
Depreciation and amortization | (20,367 | ) |  | (5,559 | )
Total deferred tax liabilities | (47,495 | ) |  | (29,891 | )
Total | $ | (1,686 | ) |  | $ | 2,700 |
The valuation allowance primarily applies to net operating loss carryforwards and unutilized tax credits in jurisdictions or under conditions where realization is not more likely than not. The $1.7 million decrease in the valuation allowance during fiscal year 2017 primarily relates to a foreign subsidiary that utilized net operating loss carryforwards in 2017 that had a valuation allowance recorded against them. The $5.0 million and $1.5 million decreases in the valuation allowance during fiscal years 2016 and 2015, respectively, primarily relate to the release of the valuation allowance on state research and development tax credits in fiscal year 2016 and foreign net operating loss carryforwards expiring unutilized in fiscal year 2015. At November 30, 2017, we have federal and foreign net operating loss carryforwards of $115.7 million expiring on various dates through 2034 and $0.8 million that may be carried forward indefinitely. In addition, we have state net operating loss carryforwards of $11.7 million expiring on various dates through 2022. At November 30, 2017, we have state tax credit carryforwards of approximately $3.0 million expiring on various dates through 2032 and $2.3 million that may be carried forward indefinitely. In addition, we have federal tax credit carryforwards of approximately $0.8 million expiring on various dates through 2034. It is our intention to indefinitely reinvest the earnings of our non-U.S. subsidiaries. We have not provided for U.S. income taxes on the undistributed earnings of non-U.S. subsidiaries, which totaled $13.8 million as of November 30, 2017, as these earnings have been indefinitely reinvested. Any additional taxes that might be payable upon repatriation of our foreign earnings would not be significant. As of November 30, 2017, the total amount of unrecognized tax benefits was $7.5 million, of which $4.5 million was recorded in other noncurrent liabilities on the consolidated balance sheet and $3.0 million of deferred tax assets, principally related to U.S and foreign net operating loss carry-forwards, have not been recorded. A reconciliation of the balance of our unrecognized tax benefits is as follows (in thousands):
| Fiscal Year Ended
| November 30, 2017 |  | November 30, 2016 |  | November 30, 2015
Balance, beginning of year | $ | 7,046 |  |  | $ | 4,779 |  |  | $ | 1,711 |
Tax positions related to current year | 785 |  |  | 1,106 |  |  | 107 |
Tax positions related to a prior period | (120 | ) |  | 1,638 |  |  | — |
Settlements with tax authorities | (155 | ) |  | (21 | ) |  | (39 | )
Tax positions acquired | — |  |  | — |  |  | 4,464 |
Lapses due to expiration of the statute of limitations | (36 | ) |  | (456 | ) |  | (1,464 | )
Balance, end of year | $ | 7,520 |  |  | $ | 7,046 |  |  | $ | 4,779 |
If recognized, all amounts of unrecognized tax benefits would affect the effective tax rate. We recognize interest and penalties related to uncertain tax positions as a component of our provision for income taxes. In fiscal year 2017 estimated interest and penalties of $0.2 million were recorded to the provision for income taxes. In fiscal years 2016 and 2015 there was a minimal amount of estimated interest and penalties recorded in the provision for income taxes. We have accrued $0.5 million and $0.3 million of estimated interest and penalties at November 30, 2017 and 2016, respectively. We do not expect any significant changes to the amount of unrecognized tax benefits in the next twelve months. Our Federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2015. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2013, and we are no longer subject to audit for those periods. Tax authorities for certain non-U.S. jurisdictions are also examining returns, none of which are material to our consolidated balance sheets, cash flows or statements of income. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2012.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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